The first Football World Cup after the epidemic has sparked discussion among netizens because of its "richness". In this World Cup, , Qatar , which won the hosting rights in 2010, has been preparing for 12 years, investing US$229 billion, which is 20 times the total investment in the last Russian World Cup, and is the most expensive World Cup in history.
According to media reports, Qatar received direct economic income of about US$2.2 billion in hosting the World Cup, and the related income can be obtained as US$17 billion. Although Qatar's official clarified that the huge investment data was inaccurate, and the investment also involved infrastructure such as subways, airports, and roads, the direct income was not enough to be a fraction of the investment. Netizens inevitably focused on the money-making ability of this event and compared it with the Olympics. Among the world's top events, who is more valuable?
World Cup competitive and money-absorbing power and
Top sports events, venues, infrastructure, etc. usually account for the largest proportion. The Tokyo Olympics financial report released in June this year showed that the venue facilities cost the most, totaling US$7.9 billion, accounting for 60.8% of the total holding costs. In order to host the World Cup, Qatar spent huge amounts of money to build a subway system, a new airport, a large number of roads and more than 100 hotels. However, Qatar officially responded that these infrastructures were not built just for the World Cup, but were related to Qatar's 2030 Vision Project.
Xinhua Photos, Caliph International Stadium.
How can I make money by investing huge sports events? In the business models of the Olympic and World Cup, broadcasting fees and sponsorship fees are the two major sources of economic resources. According to the financial report of International Olympic Committee , the television broadcasting rights are the IOC's main revenue, with a total of US$3.1 billion in 2021. Top sponsors have brought it 835.6 million in revenue.
FIFA recently released the financial revenue and expenditure status of the 2015-2018 cycle, which showed that the revenue of TV broadcasting rights, which accounted for a relatively high revenue, was US$3.127 billion. During the 2018 World Cup cycle, sponsor revenue reached US$1.66 billion.
From the perspective of time, the World Cup, as a single event, was held for a month. Dozens of teams held a group point match, qualified for qualifying and entered the rematch, and then played a single knockout match until the championship was decided, which was more competitive. On the other hand, the World Cup championship prize is getting higher and higher. The total prize money for the Qatar World Cup is as high as US$440 million, the champion can get US$42 million, the runner-up can get US$30 million, and the guaranteed earnings of US$9 million in the group stage.
is more likely to attract sponsors as a World Cup, which is a purely commercial competition. During the World Cup in Russia, FIFA launched a new way to expand its sponsors. It is understood that FIFA divides sponsors into three layers, with the top level being global partners starting at US$120 million; followed by official sponsors starting at US$68 million. The last level is regional sponsors.
FIFA previously announced on its official website that all sponsor seats have been sold out for this World Cup. The quota for regional sponsors including 7 FIFA partners, 7 World Cup sponsors and 5 regions will hit record revenues.
In addition, ticket sales account for not a high proportion of overall revenue in the Olympics. The World Cup cycle ticket revenue from 2015 to 2018 reached US$712 million. In this Qatar World Cup, the organizing committee has sold 3 million tickets, with each ticket price ranging from US$100 to US$1,100.
FIFA is the biggest winner
top sports events with high investment, and the most money-making one is not necessarily the organizer. The popularity of the Olympics has gradually declined in recent years, and one of the reasons is that the organizers have high investment and little returns.
According to historical data, the Olympic Games after 2000 are mostly losses. Among them, 2004 Athens Olympics lost as much as US$8 billion, Rio Olympics lost US$2.1 billion, and only 2000 Sydney Olympics and Beijing Olympics made profits of US$360 million and US$146 million respectively.
Xinhua News Agency photo, Tokyo Olympics.
It is not easy for the organizer to make money for the World Cup with strong money-absorbing power. Taking 2014 Brazil World Cup as an example, the Brazilian government invested about US$15 billion to build stadiums, hotels, etc. But the assessment showed that the World Cup generated US$13.4 billion in revenue for Brazil.
While releasing revenue data, other host countries talked about the World Cup boosting their own GDP, driving employment, and promoting the development of tourism and catering industries. But this account is difficult to calculate clearly and is difficult to convert into accurate data.
However, FIFA must make a sure profit. FIFA is a non-profit organization, and most of its revenue is spent on hosting competitions, promoting football development and football education. Unlike the host country, FIFA does not need to pay for venues and infrastructure costs, and only bears miscellaneous items such as organizing committees of the host country, competition bonuses, team preparations, etc. It is understood that this year, FIFA is expected to spend $1.7 billion, including $440 million in prize money and $1.5 million in preparation costs per team.
Xinhua News Agency photo.
FIFA's recent financial status for the 2015-2018 cycle showed that FIFA's revenue reached US$6.421 billion. Among them, 5.3 billion came from 2018 Russia World Cup . In 2021, the revenue also reached US$766 million. profit , profit from 2015 to 2018 was US$1.053 billion.
In addition, from 2015 to 2018, FIFA received US$600 million from licenses, 114% higher than the previous four years. It is understood that the e-sports football World Cup launched by FIFA in cooperation with game manufacturers has also attracted a large number of players.
In this year's Qatar World Cup, some media expect FIFA to earn US$7.5 billion in revenue, setting a new high. The host's account is difficult to calculate. Whether Qatar, which is not short of money, will exceed the expected returns in the future, it will probably take some time to calculate clearly.
edited and written by Nandu·Wancai Society reporter Huang Pei
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